Is The Giftware Category Dead On Arrival For 2010?

Recent comments from buyers coming back from the B to B Atlanta Gift and Orlando Product Fundraising shows illustrate selected micro trends in the 2010 hard goods category:

*“Giftware that is a “dustible” and just sits on a shelf is dead and won’t sell”.

*“Green is important, but it still must show value" i.e. cork and Bamboo giftware office supplies (pencil holders, etc) are selling through well.

*“Giftware must do more than sit and be pretty”. Yankee Candle was a big discussion at both shows, the brand is strong, is a consumable (When it melts down the consumer will buy again), and it sells through because the retail prices are affordable and carry a positive value equation. Strong Brands actually do increase sales in today's enviroment, Yankee is a classic "steward" of it's brand and the per store turns are very much up in a down economy.

*"Interactive and animated Giftware/toys are hot and the sell through is very strong”; i.e. Zhu Zhu’s, Webkinz, and Interactive pet tags (IDtag.com) are great examples.

* "Jewelry is offered by many of the “brands” now". This category is a logical line extension of well know images. Jewelry is more than a dustible, it is an emotional connection, a “little luxury” in hard times that carries value well.

A quick recap is no, giftware is not dead. Buyers beware the tired legacy brands that are still trying to keep the good old days alive by slapping new art on old products, they will be close outs. Those buyers that are watching this micro trend will be fine and have a great year if they combine brand, value, function/animation, and green into the items. JMHO

2010 Consumer Trends, An Interview With A Former "Luxury Brand Only" Shopaholic.

Amazing statements from a “Brand only” Lady on what she will buy this coming year.

Just got done interviewing Leslie ( changed to protect the innocent) who , for the record, proudly owns 3 Prada, 2 Louis Vuitton, 1 Hermes Birkin, 4 Gucci, 3 Bottega, 2 Chanel, 2 Burberry, 1 Leiber, 3 Tod and a whole lot more real (as opposed to knock offs) handbags. Collectively these handbag values would rival some home mortgages. Leslie gave me an interesting insight to 2010 and what a “brand” now means to her in 2010 in a recent sit-down:

1) The 2010 brands are the “Unbrand”
2) Brands that speak “perceived value”, not luxury will grow this year, Luxury is on hold.
3) Authentic marketing, not speaking to the consumer through a megaphone will win the day.
4) Differentiation 2010 means anything that is not like generic like overstock clothing stores who now have limited choices due to inventory depletions, she says “just junk now”.
5) Mid to upscale Department stores are coming back. Leslie points to Macys who has turned to promotions (BOGO, GWP, and credit card use discounts of 20% which are fun to a shopaholic) which make private label brands more differentiated and a new outlet for “Brands at an affordable price". She says “Macy’s is the brand, it’s affordable, better brands at a lower prices than overstock clothing stores etc. Fun, Fun, Fun........ "
6) Celebrity personalities and brand values need to be in synch, Tiger Woods, where are you today?
7) The “story” of the brand has to be “not ostentatious" and more politically correct.
8) A brand from the street can wipe out millions in Madison Avenue spending by going viral on social media. Gota have it is more and more a grass roots thing…….
9) Social networking is just getting started. Online community connecting is not a fad; it’s the way today's connected community consumers do business.

Leslie is now more into the hunt of shopping, and actually promoting herself as a “brand”, she screams: "I'm a socially responsible consumer". The brands she buys have to project giving back. Of course she still "occasionally pulls out the Birkin when a “statement” is required" !!!